Income tax notice for High value transaction received from Income tax department
As we know 31.12.2023 is the last date to file revised return or belated Income tax return for AY 2023-24 and therefore many assessee’s have received the below mentioned messages from Income tax department wherein it mentions that assessee has not shown some high value transaction in their income tax return.
“Attention VXXXX AXXXX (XXXXX0009X)
Income Tax Department has identified certain information related to high value transactions, which does not appear to be in line with the Income Tax Return filed by you for the Assessment Year 2023-24 (relating to FY 2022-23). You can view the information on compliance portal. Please submit your response online under e-Campaign tab on Compliance Portal or revise your ITR.
After login to the e-filing Portal (https://www.incometax.gov.in), please go to ”Pending Actions” tab and click on ”Compliance Portal”. On Compliance Portal, navigate to ”e-Campaign tab” and view campaign type ”High Value Transactions” to submit response. If the information has been correctly accounted for in your ITR, you may ignore this message. Thank you, – Income Tax Department”
It is important to note that in many cases none of the information has been missed while filing Income tax return and such messages are being sent in bulk manner to make assessee aware of the transactions available with Income tax department and to ask assessee to cross check the information filled by it in Income tax department.
Income tax department is sending this message to majority of shareholder wherein they have undertaken any transaction in relation to share sale, property sale, dividend income, cash withdrawal, creating FD with bank, GST turnover, GST purchase etc.
On the portal of Income tax department it is shown that income tax department is expecting feedback on various transactions. However, in some cases it is very difficult to provide feedback on each transaction as there are 100-150 transaction also. Further, in cases especially related to immovable property sale it is seen that the same transaction is reported 2-3 times as one information is reported by sub-registrar and one information is reported when TDS is deducted and accordingly for such information one should provide feedback that this is a duplicate information.
However, this information could be used by Income tax department to send notices in future as now under section 148 of the Income tax Act, they only need information to issue notice to an assessee.
Hence, it is advisable to check the information or data available on E-filing portal and it is advisable but not mandatory to provide feedback on such transaction as it is not compulsory to provide feedback.
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